Ingram Micro 2010 Annual Report Download - page 41

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Quarterly Data; Seasonality
Our quarterly operating results have fluctuated significantly in the past and will likely continue to do so in the
future as a result of various factors as more fully described in Part I, Item 1A. “Risk Factors.”
The following table sets forth certain unaudited quarterly historical financial data for each of the eight quarters
in the two years ended January 1, 2011. This unaudited quarterly information has been prepared on the same basis as
the annual information presented elsewhere herein and, in our opinion, includes all adjustments necessary for a fair
statement of the selected quarterly information. This information should be read in conjunction with the consol-
idated financial statements and notes thereto included elsewhere in this Annual Report on Form 10-K. The
operating results for any quarter shown are not necessarily indicative of results for any future period.
Net
Sales
Gross
Profit
Income
From
Operations
Income
Before
Income
Taxes
Net
Income
Diluted
Earnings
Per
Share
2010
Quarter Ended:(1)(2)
April 3, 2010............. $8,095,954 $441,462 $105,689 $ 97,232 $ 70,328 $0.42
July 3, 2010 ............. 8,156,328 437,453 104,576 94,723 67,727 0.41
October 2, 2010........... 8,453,835 453,525 106,911 88,562 64,989 0.41
January 1, 2011 ........... 9,882,867 559,851 167,257 157,544 115,016 0.71
2009
Quarter Ended:(2)(3)
April 4, 2009............. $6,745,084 $381,004 $ 45,246 $ 37,625 $ 27,466 $0.17
July 4, 2009 ............. 6,578,598 386,105 40,993 34,248 25,344 0.15
October 3, 2009........... 7,384,574 401,910 63,181 56,408 42,306 0.25
January 2, 2010 ........... 8,807,190 501,190 146,520 140,967 107,023 0.64
(1) Includes the pre-tax impact of reorganization costs (credits) as follows: first quarter, ($169); second quarter,
($189); and fourth quarter, $1,495. The first quarter includes a pre-tax gain of $2,380 on the sale of land and
building in EMEA, recorded as a reduction of SG&A expenses, while the fourth quarter includes a $9,112
partial release of the reserve for Brazilian commercial taxes related to a period which has expired under the
statute of limitations, recorded as a reduction of cost of sales.
(2) Diluted earnings per share is calculated independently each quarter and for the full year based upon their
respective weighted average shares outstanding. Therefore, the sum of the quarterly earnings per share may not
equal the annual earnings per share reported.
(3) Includes the pre-tax impact of charges related to reorganization costs and expense-reduction program costs as
follows: first quarter, $14,224; second quarter, $7,353; third quarter, $8,399; and fourth quarter, $7,660. The
second quarter includes a pre-tax charge of $2,490 for the impairment of goodwill, while the fourth quarter
includes a $9,758 partial release of the reserve for Brazilian commercial taxes related to a period which has
expired under the statute of limitations, recorded as a reduction of cost of sales.
Liquidity and Capital Resources
Cash Flows
We finance our working capital needs and investments in the business largely through net income before
noncash items, available cash, trade and supplier credit, and various financing facilities. As a distributor, our
business requires significant investment in working capital, particularly trade accounts receivable and inventory,
which is partially financed by vendor trade accounts payable. As a general rule, when sales volumes are increasing,
our net investment in working capital dollars typically increases, which generally results in decreased cash flow
generated from operating activities. Conversely, when sales volume decreases, our net investment in working
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